By TKay Nthebe
Taking care of and managing your finances requires that you plan and meticulously track your spending to stay on top of things. As the financial blows keep coming – interest rate increases, tough economic times and general high cost of living, I hope these weekly articles and Leruo Radio Shows keep you motivated and inspired to keep working on your finances.
With the April payday a few weeks away, this week’s article shares five money tips to help you plan and prepare for it which I discuss below.
- Do a review of the previous month.
To understand which direction to take, you must understand where you come from. The first step is to start with painting a picture of your current financial position. Doing a financial review will help you to identify your spending patterns and money habits. Over the next few days, download your bank statements and allocate some time to review your finances. What to look out for on your bank statements?
- Determine what you spent your money on and which expenses you incurred/prioritised.
- Determine if your loan instalments have changed and if so, by how much due to the recent interest rate increase.
- Determine and calculate how much money you’ve put away some money for rainy days and/or your future.
- Set financial goals for quarter two.
With the second quarter of 2023 underway, it is important to determine what financial goals you’d want to achieve and how you plan to achieve them. In previous articles, I’ve discussed setting financial goals that are SMART–specific, measurable, attainable, realistic and time-bound.
- Prepare a new budget and track spending.
The last few weeks were very chilly, forcing us to unpack our blankets and heaters as the colder months approached. Sadly, the cost of electricity and gas remains high. Spend some time over the next few days working on your budget and planning for colder months.
- How much money do you need to take care of autumn/winter expenses that include children’s winter clothing, heaters, paraffin and electricity?
- How do you plan to track utilisation and stay within budget?
- Pay yourself first.
Just because the cost of living is high does not mean we should not prioritise saving money and investing for the future. The myth is that you need to have a lot of money to save and invest. From as little as M100 per month (depending on your budget and affordability) you can save and invest for your future. There are many saving and investment products available for you to choose from, which I also discussed in the articles titled ‘Take care of yourself and start saving’ and ‘Investment planning considerations’ respectively available at www.thereporter.co.ls
- Plan for the tax filing season.
1 April 2023 officially marks the start of the tax filing season. Whether you are employed, self-employed or running a business, being tax compliant is non-negotiable. Start collecting all the required documents and prepare to file your tax returns on time. Let’s take care of our finances and make our money work for us this April!
Should you need more information or financial planning tips, follow Leruo available via print, radio and digital platforms.
